Effective Date (Date of Value)
The date on which the appraiser's opinion of value applies. All market data, property condition, and value conclusions are anchored to this specific date. It may be current or retrospective.
The effective date is critical because property values change over time. For most current appraisals, the effective date is the date of the property inspection. Retrospective appraisals use a historical effective date — common for estate settlements (date of death), tax appeals (October 1 assessment date in NJ), divorce proceedings (date of separation), and insurance claims. The appraiser must use market data and conditions as of the effective date, not the report date. The distinction between effective date and report date is important — the report may be written weeks after the inspection, but the value applies to the effective date.
Related Terms
Market Value
The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus..
Scope of Work
The type and extent of research and analysis performed in an appraisal assignment.
Retrospective Appraisal
An appraisal with an effective date in the past.
Time Adjustment (Market Conditions Adjustment)
An adjustment applied to a comparable sale to account for changes in market value between the date of the comparable's sale and the effective date of the appraisal.
More in Appraisal Process
View allExtraordinary Assumption
An assumption that is directly related to a specific assignment and, if found to be false, could alter the appraiser's opinions or conclusions.
Hypothetical Condition
A condition that is contrary to known fact but is assumed for the purpose of analysis.
As-Is Value
The value of a property in its current physical condition, as of the effective date of the appraisal, without any hypothetical conditions or extraordinary assumptions about future improvements or changes..
Prospective Value
A forecast of a property's value at a future date, based on anticipated changes in market conditions, property improvements, or other factors.